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Ethiopia's reformist new prime minister says the country has "no option" but to pursue multi-party democracy in the latest shakeup in a country ruled for decades by a single coalition.

The chief of staff for Prime Minister Abiy Ahmed announced the remarks on Twitter, saying they were made on Sunday during a meeting with leaders of more than 50 national and regional parties, including ones from overseas.

Fitsum Arega says the prime minister said a multiparty democracy would need strong institutions that respect human rights and rule of law.

Abiy has announced sweeping reforms since taking office in April, including the release of opposition figures from prison and the embrace of a peace deal that led to the surprising restoration of diplomatic ties with longtime rival Eritrea.

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